What Is Copy Trading + Best UK Platforms 2024?
In the world of trading, the concept of copy trading has gained significant traction in recent years. But what exactly is copy trading, and how does it work? Let's break it down in simpler terms.
What is Copy Trading?
Copy trading is essentially a method where individuals can mimic the trades made by other, usually more experienced traders, in real-time. The idea is straightforward: find a trader with a successful track record and replicate their trades.
The Players Involved
There are typically three key players in copy trading:
Provider: This is the trader whose trades are being copied. Sometimes known as a "Master Trader" or "Signal Provider," they are the ones paving the way for others to follow.
Copier: This is you, the person copying the provider's trades. You utilize your own trading account to mirror the actions of the provider.
Broker: The intermediary facilitating copy trading. They provide access to the platform where providers and copiers connect, often through applications like MetaTrader 4.
How Does it Work?
Brokerages offer specialised software or applications for copy trading. In these platforms, traders being copied are termed as ‘signals’, while their followers are ‘copiers’. Here's a simplified breakdown:
Traders sign up with the brokerage and link their accounts to the copy trading platform.
As the signals trade and establish a track record, their performance data becomes visible through the app.
Copiers choose which signals to follow. Once connected, every transaction executed by the signal is automatically replicated in the copier's account, adjusted proportionally for factors like available funds and risk preference.
In exchange, the signal trader charges a percentage of the profits.
Where Can I Start Copy Trading?
PU Prime allow people in the UK to copy more successful traders. We’ve managed to get a 50% deposit bonus for new sign ups. You can access our full guide + bonus here.